Christina Lake Cannabis reported a loss and comprehensive loss of nearly $1.6 million from $3.3 million in sales in the three month period ended May 31, 2024.

The company released their Q1 and Q2 2024 financial statements on June 25, 2024, with $1.2 million in losses in Q1 from just under $3 million in sales. 

As at May 31, 2024, the Company had working capital of $4,957,122 (2023 – $6,009,129), which consisted of cash of $1,427,361 (2023 – $1,468,028), receivables of $1,746,747 (2023 – $1,846,669), prepaid expenses of $54,221 (2023 – $462,322), inventory of $3,928,919 (2023 – $5,654,514), and assets held for sale of $581,767 (2023 – $nil). 

Current liabilities, being accounts payable and accrued liabilities, the current portion of loan and current portion of convertible debentures, were $2,781,893 (2023 – $4,004,171).

Christina Lake Cannabis’ (CLC) operates a facility on a 32-acre property that includes over 950,000 square feet of outdoor grow space, offices, propagation and drying rooms, research facilities, and a facility dedicated to processing and extraction. Christina Lake Cannabis also owns a 99-acre plot of land adjoining its principal site. 

The company focuses its production on extracts and distillate for its B2B client base, with cultivars specifically developed for outdoor cultivation for the purpose of extraction. CLC has determined the fair value, less costs to sell, and less incremental processing costs of cannabis distillate to be $1.53 per gram. The average harvested yield of biomass is 1,306 grams per plant, with an average yield from dried biomass to distillate of 6% to 9% depending on the cultivar.

In November 2022, the company reported an average selling price of $3 a gram for dried flower. In November 2023, that had dropped to $1.90.

On June 1, 2024, CLC entered into a 24-month rental agreement for equipment with a monthly payment of $1,700 per month. The company has the option to purchase the equipment at the end of the rental period. A director of CLC owns the rental company.